David Portnoy, the founder of Barstool Sports, is once again the site’s sole owner after Penn Entertainment sold the company back to him.
Portnoy wrote on Tuesday that he and Penn had “gone our separate ways,” CNBC reported.
The value of the deal was not disclosed, but Barstool was valued at $606 million in February when Penn bought out Portnoy. Penn first became a partial owner of the sports and commentary website in 2020. Penn reportedly paid Portnoy $388 million to buy him out in Feb.
(L-R) Dan Katz and Dave Portnoy of Barstool Sports are seen in attendance during the UFC 281 event at Madison Square Garden on November 12, 2022, in New York City. (Chris Unger/Zuffa LLC)
Penn is turning its attention to an online sports betting deal with Disney-owned ESPN, an announcement that sent its shares up more than 15 percent, CNBC added.
Penn is set to manage ESPN Bet with a ten-year contract, the AP reported. The deal is reportedly costing Penn a whopping $1.5 billion.
“Penn Entertainment is the perfect partner to build an unmatched user experience for sports betting with ESPN Bet,” ESPN chairman Jimmy Pitaro said on Tuesday.
One detail was disclosed, though. Penn will be awarded 50 percent of any proceeds if Portnoy sells or otherwise monetizes Barstool. It was not disclosed, though, if that provision has a time limit.
Still, in a video posted to social media, Portnoy claimed he would “never” sell Barstool again. And he pledged that the site’s content will be back to the “pirate ship” style of raucous commentary as before Penn became involved and the site began trying to moderate its tone.
Emergency Press Conference – I Bought Back Barstool Sports pic.twitter.com/dmUk0eNowx
— Dave Portnoy (@stoolpresidente) August 8, 2023
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